Out of Ammo? The Eroding Power of Central Banks

Since the financial crisis, central banks have slashed interest rates, purchased vast quantities of sovereign bonds and bailed out banks. Now, though, their influence appears to be on the wane with measures producing paltry results. Do they still have control?
The skyline of Frankfurt with the new ECB building in the background: "Exhausting the policy room for manoeuver."

The skyline of Frankfurt with the new ECB building in the background: "Exhausting the policy room for manoeuver."

Foto: Boris Roessler/ dpa
Graphic: Business cycle versus financial market fluctuations.

Graphic: Business cycle versus financial market fluctuations.

Foto: DER SPIEGEL
Translated from the German by Christopher Sultan